- Financial adviser Spayne Lindsay has been enlisted to assist Samworth Brothers in the sale of Soreen, according to reports in The Grocer.
- The brand, valued at up to £75m, has attracted interest from Premier Foods, Valeo Foods, and Finsbury Food Group.
- Private equity firms may also consider acquiring Soreen, but a trade sale is deemed more likely.
- Soreen saw a 13% rise in sales last year, reaching £41m, with a notable EBITDA increase to £6m.
The company, a significant player in the food and beverage industry, has sought the expertise of financial adviser Spayne Lindsay to manage the sale process, according to a report from The Grocer.
City sources indicate a strong market interest in Soreen, a brand valued at an estimated £75 million. Notable contenders for the acquisition include leading food manufacturers Premier Foods, Valeo Foods, and Finsbury Food Group. Industry insiders suggest that while private equity involvement is possible, a transaction with a trade buyer is the more anticipated outcome.
The financial performance of Soreen underscores its market appeal, with the brand experiencing a 13% increase in sales in 2023, bringing total earnings to £41 million. Furthermore, the earnings before interest, taxes, depreciation, and amortisation (EBITDA) experienced a notable growth, rising from £4.7 million to £6 million. This financial robustness makes Soreen an attractive proposition for potential buyers.
In a separate development, Samworth Brothers has encountered significant legal and financial challenges following a tragic incident at one of its facilities. The company has been fined £1.28 million after an employee was fatally injured in a lorry accident at their Cornwall site. The Health and Safety Executive (HSE) investigation revealed inadequate risk assessment concerning safety curtains in the loading area, leading to the imposition of the fine.
The forthcoming sale of Soreen marks a significant strategic shift for Samworth Brothers amidst recent financial and legal challenges.
